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Poster: elbow1126 Date: Jan 21, 2011 7:18pm
Forum: GratefulDead Subject: The Gold was already mined

Was looking for an article about how Rhino moved the vault to SoCal to answer advokat's question about Burbank and stumbled into this:

http://www.marinij.com/marin/ci_4136208

"It is also a lucrative and timely development for four musicians who are in deep middle-age, either 60 or over or close to it. While the terms of the deal were not disclosed, "it's a lot of money," said Tim Jorstad, a San Rafael-based accountant who is the Dead's chief financial officer in Marin.

"We negotiated a profit sharing with Rhino with some very large minimum payments each year," he said. "We have replaced their income, at one of their highest earning years, for 10 years. We are expecting to earn way more than the minimum payments, but at least these guys are very well protected. They're pleased that they have financial security for 10 years."

Sounds like they already got paid and good sales are only a bonus for the band members. So if the RT subscription and the eurobox are about raising capital its not for Phil's mansion or Bob's tuition fees. It's Rhino. Probably also suggests that the IP issues aren't really the band members either.

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Poster: William Tell Date: Jan 21, 2011 8:36pm
Forum: GratefulDead Subject: Re: The Gold was already mined

Cool; good info...thx. Oh, and of course, to clarify: I have no take on whether it's a gold mine or not, or who will profit from it, though it keeps coming thru as if I do...I really do mean to pose these as questions to be answered. One continuing one is the Lou D outline of "costs", etc. (ie, production of disks).

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Poster: vapors Date: Jan 22, 2011 3:40am
Forum: GratefulDead Subject: Re: The Gold was already mined

Financial aspects aside, I think we all profit here. We want to hear the music, and reading about the deal including the GD’s “vast archive of unreleased live concert recordings” makes me optimistic and excited. As you pointed out in another thread, Rhino has been busy, and even though some of us would like more early and less later era, the fan base is large and diverse, and the fact that they are digitizing, remastering, and marketing this IP (again ‘vast archive’) is all a very good portent of future possibilities.

"With Grateful Dead it all begins with the music and the fans," says Jimmy Edwards, Senior Vice President at Rhino. "They truly have one of the most knowledgeable and devoted followings in popular music. We are very excited about this opportunity to preserve and nurture this special relationship through releases and initiatives of the highest integrity."
http://www.rhinomedia.com/rzine/pressrelease.lasso?PRID=417

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Poster: elbow1126 Date: Jan 22, 2011 4:47am
Forum: GratefulDead Subject: Re: The Gold was already mined

I completely agree with you about the fanbase being the beneficiaries of Rhino's activities. However I do not think the fanbase is really that large and I also think that is why they do things in a manner that we sometimes find peculiar. I mentioned in that other thread about the profit margin being better on CDs than on mp3 downloads through services like itunes. If you are marketing Justin Beiber or Lady Gaga then a small profit margin/unit is no big deal and you would trade that for the volume that you will sell through an outlet like the itunes music store. However if you are selling to a niche market then you aren't going to make money that way and need to maximize your profit/unit. I think we are niche market and Rhino has a lot of experience with this. I suspect Rhino also looked very carefully at how the Digital Download Series did and weren't impressed and that is why they don't do things like that even though from a consumer standpoint it seems to make sense.

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Poster: vapors Date: Jan 22, 2011 5:59am
Forum: GratefulDead Subject: Re: The Gold was already mined

I don’t have any facts, just an impression that the GD fan base is large, but I suppose the niche market is those of us that want more unreleased shows and/or better quality over what we already have, as opposed to those fans who are content or saturated with the large amount of offerings already available. I agree that Rhino must do a competent marketing analysis to determine the value of different approaches ( who wouldn’t) and make their decisions accordingly. It is too bad that the download series wasn’t successful enough to continue as I think there is an awesome potential there (for us fans anyhow.) The costs involved in preparing, hosting and processing must have proven to be greater than whatever potential profit could be realized. I think that has probably been discussed here before. Anyhow, always glad to read your thoughts on these matters.

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Poster: advokat Date: Jan 21, 2011 7:37pm
Forum: GratefulDead Subject: Re: The Gold was already mined

Nice find - thanks for posting.